JPMorgan CEO Jamie Dimon Says Banking Disaster Not Over — Warns of ‘Repercussions for Years to Come’ – Economics Bitcoin Information

JPMorgan Chase CEO Jamie Dimon says the U.S. banking disaster isn’t over and “there might be repercussions from it for years to return.” The chief added that current financial institution failures “have considerably modified the market’s expectations,” and the chances of a recession have elevated.

JPMorgan CEO Jamie Dimon on U.S. Financial system, Recession, and Banking Disaster

Jamie Dimon, chairman and CEO of JPMorgan Chase, shared his considerations relating to the U.S. financial system, recession, and the banking disaster in his annual letter to shareholders, revealed final week. The letter adopted the current collapse of a number of main banks within the U.S., together with Silicon Valley Financial institution and Signature Financial institution. Calling current financial institution failures a “banking disaster,” Dimon warned:

The present disaster isn’t but over, and even when it’s behind us, there might be repercussions from it for years to return.

“Latest occasions are nothing like what occurred through the 2008 international monetary disaster (which barely affected regional banks),” the JPMorgan boss defined. “At the moment, there was monumental leverage just about all over the place within the monetary system.” In distinction, he famous: “This present banking disaster includes far fewer monetary gamers and fewer points that should be resolved.”

Commenting on the Federal Reserve’s efforts to curb inflation and future take hikes, Dimon opined:

If we’ve got larger inflation for longer, the Fed could also be compelled to extend charges larger than individuals anticipate regardless of the current financial institution disaster.

As well as, he cautioned that quantitative tightening (QT) “could have ongoing impacts which may, over time, be one other drive, pushing longer-term charges larger than at the moment envisioned. This will happen even when we’ve got a gentle — or not-so-mild — recession, as we noticed within the Nineteen Seventies and Eighties.”

Dimon defined that the failures of Silicon Valley Financial institution and Credit score Suisse “have considerably modified the market’s expectations, bond costs have recovered dramatically, the inventory market is down, and the market’s odds of a recession have elevated.” He emphasised:

Whereas that is nothing like 2008, it isn’t clear when this present disaster will finish.

Nonetheless, the JPMorgan government insisted that the present financial system is “fairly good” however reiterated that there are “storm clouds forward.”

What do you consider JPMorgan CEO Jamie Dimon’s view of the financial system and the banking disaster? Tell us within the feedback part beneath.

Kevin 200x200 closeup
Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source programs, community results and the intersection between economics and cryptography.

Picture Credit: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This text is for informational functions solely. It’s not a direct supply or solicitation of a proposal to purchase or promote, or a advice or endorsement of any merchandise, providers, or firms. doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, straight or not directly, for any harm or loss precipitated or alleged to be attributable to or in reference to using or reliance on any content material, items or providers talked about on this article.

Supply hyperlink

Leave a Reply

Your email address will not be published. Required fields are marked *